Specialist may aid water plan set-up
That was the take of Cr John McCone at this week's Waitaki District Council (WDC) workshop, which heard feedback from the Department of Internal Affairs (DIA) on the council's recently-submitted draft water services delivery plan, a mandated part of the government's new Local Water Done Well legislation.
DIA representative Warren Ulusele told councillors the gap between the council's draft plan and the government's assessment criteria was so significant, if it was to be assessed today, the most likely outcome would be that Minister for Local Government Simon Watts would appoint a specialist with decision-making powers to ensure the plan could meet the criteria, whether that was as a stand-alone council or in conjunction with others.
"What we've identified here is a pretty significant gap. This is not a scenario of being quite close with a little bit more work to get it across the line ... in that scenario what you look at is somebody who comes in with the mandate and direction to develop a financial statement in the most expedient way they can."
Mr Ulusele said the key criteria being assessed were around financial sustainability, investment sufficiency, financing sufficiency and environmental compliance.
"We've got some issues with all those," he said.
DIA issued its full feedback on the draft plan before the meeting. That document noted particular concerns around a proposed 61% increase in water charges (by targeted rate per household) in the 2026-27 financial year as it "may not be sustainable and affordable for the community".
Over the next decade, the cost of water services is set to increase by 114%, a rise that would see charges consume 3.3% of median household income by 2034.
DIA also pointed out concerns the council's plan relied on it gaining a credit rating, stating "we do not have confidence that this is achievable".
It also stated concerns about a lack of investment in the first few years of the plan.
Mr Ulusele said the council might be having challenges addressing long-term integrity of infrastructure "because there's been insignificant or a lack of appropriate levels of investment today".
Council staff will now work out how to address the concerns of the DIA before next week's workshop, which is likely the last one before the September 3 deadline for all councils to provide the department with a final Water Services Delivery Plan (WSDP).
It is required under the government's Local Water Done Well reforms.
The council last month voted to follow an in-house (ring-fenced) model, after public consultation showed it was the most popular, but against DIA advice, which had previously advised that a joint venture with Central Otago, Clutha and Gore district councils was the only viable option.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Otago Daily Times
14 hours ago
- Otago Daily Times
Trio of councils move ahead on water plan
The three councils left in the Southern Water Done Well scheme have each voted to move ahead with the venture. The Central Otago District Council reaffirmed its decision to form a jointly owned Council Controlled Organisation (CCO) with its Southern Water Done Well partners — Gore and Clutha district councils — at a meeting on Tuesday. Gore did the same and Clutha District Council also decided to go ahead. All councils confirmed their Water Services Delivery Plan (WSDP), which set out the future water services delivery model. Councils must submit their WSDPs to the Department of Internal Affairs by September 3. The decision comes after modelling showed that a southern jointly owned CCO remains the most affordable option for the future delivery of water services, even following the departure of SWDW foundation partner Waitaki District Council. — Allied Media
NZ Herald
18 hours ago
- NZ Herald
Mayor's water services affordability plea rejected by Ruapehu District Council
Ruapehu was among the most economically disadvantaged districts in New Zealand, with many households 'already stretched to breaking point by the cost-of-living crisis'. 'All of this term we've acknowledged this reality, especially for Māori communities. Yet today, some are still prepared to back the most expensive option on the table, a position I cannot understand.' Kirton said the two-council model would almost double the Department of Internal Affairs' (DIA) affordability benchmark that water costs should not exceed 2.5% of median household income. He also cited new information since the original July 9 decision, including a requirement from the Water Services Authority - Taumata Arowai to bring forward costly wastewater treatment upgrades previously delayed for affordability reasons. The Whanganui council had rejected price harmonisation, which would have shared costs evenly across both councils. 'There is nothing in the two-council arrangement for Ruapehu except ability to increase our debt headroom to borrow more for upgrades our people cannot afford.' In the public forum, Ngāti Hāua Iwi Trust spokesman Kuru Ketu said the council's role was to make decisions about water services and infrastructure, not water itself. Making a decision on the basis of 'keeping the catchment together' was 'statutory overreach'. 'The relationship and union of the catchment is whakapapa-based and now protected and provided for by Te Awa Tupua legislation. The catchment will remain together regardless of Local Water Done Well arrangements.' Ketu said 70% of Māori in northern Taumarunui ranked among the most deprived in the country. If people could not pay their bills, the council controlled organisation (CCO) could not function. The trust backed a larger multi-council entity for its greater borrowing capacity, cheaper debt and stronger buying power. Deana Wilson, representing Ngāti Rangi, supported the two-council decision, highlighting iwi connection to waterways and the link between water health and community wellbeing. She said collaboration was key to finding solutions to the region's wastewater treatment challenges. Ratepayer Marama Laurensen urged councillors to focus on practical realities such as cost and community impact rather than personal or emotive views about the river. 'I don't expect councillors to be carrying that particular responsibility. People elect you to deliver service to the community, not to use this table as a platform for your point of view or your feelings.' Laurensen said affordability was critical in a deprived community. Without it, 'you don't have the luxury of having wellbeing', she said. Kirton said the decision came down to a moral and financial duty. 'Do we protect our people from costs they can't afford, or do we lock them into a model that will take money they simply don't have?' Councillors Brenda Ralph and Janelle Hinch backed Kirton's position. Ralph warned higher charges would hit tenants, homeowners and businesses alike, forcing some residents to move away. Hinch said expert advice showed larger multi-council models were the most cost-effective, and warned the two-council option could be unviable for Ruapehu and risk being overturned. River protections were enshrined in legislation, and whakapapa to the rivers would not be severed, she said. Continuing with the two-council model would cause unnecessary hardship. Councillor Robyn Gram originally voted to join a larger model but on Wednesday withdrew her support. Deputy Mayor Viv Hoeta stood by her original vote for the two-council CCO. She said she valued the democratic decision already made and the partnership agreed to by both councils. The case for affordability was based on assumptions rather than facts, she said. Councillor Lyn Neeson said she struggled to see how $1000 extra would be imposed on ratepayers. 'I'm deeply concerned that the conversation over the past fortnight has put serious fear into our ratepayers that it is going to be unaffordable to live in Ruapehu.' Neeson said all councils' water rates would rise. 'The water improvements have to be made. They were unaffordable, that's the reason they weren't made. Now we have to make them.' A higher borrowing cap, cheaper debt and more buying power were not exclusive to the larger multi-council model, she said. LDR is local body journalism co-funded by RNZ and NZ On Air.
Otago Daily Times
a day ago
- Otago Daily Times
Specialist may aid water plan set-up
The looming threat of a government "specialist" being parachuted in to decide how to set up Waitaki's water services has been labelled a case of "local democracy done poorly". That was the take of Cr John McCone at this week's Waitaki District Council (WDC) workshop, which heard feedback from the Department of Internal Affairs (DIA) on the council's recently-submitted draft water services delivery plan, a mandated part of the government's new Local Water Done Well legislation. DIA representative Warren Ulusele told councillors the gap between the council's draft plan and the government's assessment criteria was so significant, if it was to be assessed today, the most likely outcome would be that Minister for Local Government Simon Watts would appoint a specialist with decision-making powers to ensure the plan could meet the criteria, whether that was as a stand-alone council or in conjunction with others. "What we've identified here is a pretty significant gap. This is not a scenario of being quite close with a little bit more work to get it across the line ... in that scenario what you look at is somebody who comes in with the mandate and direction to develop a financial statement in the most expedient way they can." Mr Ulusele said the key criteria being assessed were around financial sustainability, investment sufficiency, financing sufficiency and environmental compliance. "We've got some issues with all those," he said. DIA issued its full feedback on the draft plan before the meeting. That document noted particular concerns around a proposed 61% increase in water charges (by targeted rate per household) in the 2026-27 financial year as it "may not be sustainable and affordable for the community". Over the next decade, the cost of water services is set to increase by 114%, a rise that would see charges consume 3.3% of median household income by 2034. DIA also pointed out concerns the council's plan relied on it gaining a credit rating, stating "we do not have confidence that this is achievable". It also stated concerns about a lack of investment in the first few years of the plan. Mr Ulusele said the council might be having challenges addressing long-term integrity of infrastructure "because there's been insignificant or a lack of appropriate levels of investment today". Council staff will now work out how to address the concerns of the DIA before next week's workshop, which is likely the last one before the September 3 deadline for all councils to provide the department with a final Water Services Delivery Plan (WSDP). It is required under the government's Local Water Done Well reforms. The council last month voted to follow an in-house (ring-fenced) model, after public consultation showed it was the most popular, but against DIA advice, which had previously advised that a joint venture with Central Otago, Clutha and Gore district councils was the only viable option.
